Generating Internal Profits Generating Internal Profits TURN KEY i n du st ri al en gi ne er in g se rv ices , i n c. Adding Value through Process Improvement 805 Summerfield Drive • Lakeland, FL • 33803 Phone: (863) 619-9904 • Fax: (863) 619-9905 CSC Production Management Workshop October 22, 2003
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CSC Prod Mgmt Presentation 031022 - turnkeyengineering.com · CSC Production Management Workshop October 22, 2003. 2 Agenda zProfessional Background zGoal of Presentation zDefinitions
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Move soil unloadingcarts to back ofdelivery vehicle
Move carts to soilcount area
Are carts full?
Move carts to soilsling area
Transfer items fromsoil carts into soil
slings
Weigh soil slings
Correctweight? Adjust sling weight
Attach slings to soilmonorail hoist
Lift slings into soilmonorail storage
system
Select appropriatemonorail storage
rail
FINISH
Record count forproduct
classification
Process FlowchartSoil Linen Process
N
Y
Y
N
N
Y
Results:
The steps highlighted in yellow add value to the process.
The remaining steps do not add value. They exist in order to transfer products from one value-added step to the next.
CleanlinessQuality
Price
CleanlinessQuality
Price
START
Unload soilcustomer bags
from vehicle intocarts
Move carts tounload staging area
Remove customerbag from carts
Spill contents ofbag onto count
table
Hand count onespecific product
classification(e.g. red napkins)
All itemscounted?
Segregate items byproduct
classification
Place counteditems into carts
Move soil unloadingcarts to back ofdelivery vehicle
Move carts to soilcount area
Are carts full?
Move carts to soilsling area
Transfer items fromsoil carts into soil
slings
Weigh soil slings
Correctweight? Adjust sling weight
Attach slings to soilmonorail hoist
Lift slings into soilmonorail storage
system
Select appropriatemonorail storage
rail
FINISH
Record count forproduct
classification
Process FlowchartSoil Linen Process
N
Y
Y
N
N
Y
Exercise:
First, improve the steps that do not add value by:
1. Eliminating them2. Simplifying them3. Increasing their value
Second, improve the steps that add value by:
1. Simplifying them2. Increasing their value
Results
The process was improved by installing:
START
Automaticallytransfer customer
bags to soilcounting stations
Spill contents ofbag onto count
table
Count multipleproduct
classifications atonce
Place products intobins sorted byclassification
All itemscounted?
Automaticallyrecord count for
productsclassifications
Automaticallytransfer slings tocorrect monorail
storage rail
Unload soilcustomer bags
from vehicle ontosoil bag monorail
system
Automaticallytransfer products to
soil sorting
Is bin at thecorrect weight?
FINISH
Automaticallytransfer soil
products to slings
Improved Process FlowchartSoil Linen Process
Y
N
Y
N
Automatically weighbin contents
Customer bag monorail systemVacuum count systemAutomated soil monorail system
Process steps: 20 12
Non-value add steps: 13 6
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Generating Internal ProfitsGenerating Internal ProfitsAdding Value through Process ImprovementAdding Value through Process Improvement
Process Improvement Exercise:
Cost of project: $400,000
Total Savings: $150,000 per year
ROI: 2.67 years
Value Adds:Decreased unloading time, improved soil count accuracy, accurate washer loading, accurate poundage tracking, reduced employee injuries, etc.
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Conclusion:
Look for internal profits.
Use the Midas Touch Approach to simplify your processes and increase value.
Turn opportunities into $$$.
Generating Internal ProfitsGenerating Internal ProfitsAdding Value through Process ImprovementAdding Value through Process Improvement